On Weibo, we continue to explore the “world” of blockchain; smart contract “;. We believe that the current” smart contract “will become the core insurance use case of the blockchain. Why? Because the main thing people buy when they buy insurance is a contract. Nothing else. Insurance is a contract. If a series of events occur in the future, it must be paid within the scope of the above contract.
There is nothing wrong with the contracts used by insurance companies today. Because they are boring and small print, ambiguity is allowed, and lawyers and managers are usually required to guide many built-in escape routes. Therefore, the introduction of “smart contract” into the process requires technology and investment, and the insurance industry is very slow in these two aspects.
On the surface, the insurance contract will be very simple. When they treat and sign all parties fairly, all parties should get ideas and make suggestions. In many cases, insurance companies oppose claims and delay payment. This is where smart contracts meet demand. In the world of smart contracts Welcome. These contracts do not leave an opportunity to explain. For insurance, they bring many benefits.
The use of these contracts is related to the development of the current blockchain and changes in technology and procedures. For many companies, this change is still young. In many cases, insurance companies are in the proof of concept(POC) stage.
The use of blockchain in the insurance industry is a necessary technology game rule changer in the industry, which brings direct processing advantages to insurance companies and intermediaries. Smart contracts will eventually be used for sharing economy, short-term labor economy, the Internet of Things and platform insurance, making the process very transactional.
The main idea of using “intelligence” in smart contracts is to use technical codes to determine the relationship and obligations between the parties and automatically manage these terms and relationships. These contracts can exchange money, property, stocks or anything basically valuable transparently and without conflict.
By default, smart protocols have built-in trust. If they are added to the creativity of decentralized blockchain networks, the insurance industry will see the strength of these contacts. Especially on parameterization and transaction insurance. Ambiguity conflict is eliminated. Speed and volume are improved.
The term “; smart Contract”; it is widely related to Ethernet or IBM. At present, Ethernet smart contracts are the most popular. However, smart contracts can be created on other blockchain platforms.
A report of the US Senate in 2018 “Smart contracts may sound new, but this concept is rooted in the basic contract law. Generally speaking, the judicial system adjudicates contract disputes and enforces clauses, but another arbitration method is also very common, especially in international transactions. Through smart contracts, the program enforces contracts built into the code;
Other forms of smart contracts are portable contracts. This form of contract may be more suitable for the insurance industry. The definition given by its creator is: “; a digital contract that defines the terms of two or more peer-to-peer interactive components that are encrypted, signed and verified. Importantly, human and machine readable and digitally signed.” This definition is very suitable for the insurance that both parties are willing to use at any time.
The refurbishment agreement registers legally valid digital connection documents as specific objects or values. Refurbishment agreements store all information in legal documents in a software executable format. This is a legal agreement and agreement between the two parties, which aims to provide a higher level of security by identifying passwords.
For example, through smart contracts, a person can own a hurricane insurance contract encoded by a series of rules on the blockchain.
In the event of a hurricane, smart contracts can automatically transfer compensation to beneficiaries. The insurance company can provide additional restrictions, such as when the hurricane reaches a certain strength and moves to a certain position within a certain parameter range, it is allowed to move.
The conditions of the intelligent protocol are based on the data stored in the blockchain, so you only need to rely on external services that obtain data from the “blockchain”. Real “; push blockchain in hurricane tracking and positioning technology(or vice versa). This service is called” service “. Inspiration from God; with this example in mind, the gods can check the track and intensity of the hurricane to determine whether the individual/company(the insured) is eligible for compensation. This qualification can also test claim materials that are read immediately in the blockchain(such as invoices or other records). This will start automatic payment immediately.